SINGAPORE (Feb 28): Super Group posts earnings of $15.5 million in the fourth quarter ended Dec 31, slipping marginally from earnings of $15.7 million a year ago.
This was mainly due to lower gross profit margin of 35% in 4Q, compared to 39% a year ago, as a result of higher raw material costs and a higher composition of lower-margin food ingredients sales.
In addition, Super Group saw higher general and administrative expenses of $1.5 million, compared to $0.6 million a year ago. This was primarily due to the writing off of damaged or obsolete inventories.
Revenue increased 9% to $154.3 million in the quarter, from $141.1 million a year ago.
Food ingredients sales increased by 27% to $57.3 million, due mainly to higher sales into the Asia markets, and maiden sales contributions from the Europe markets.
Branded consumer sales increased by 1% to $97.0 million, due mainly to higher sales into the Asia markets, particularly Thailand and China.
Cash and cash equivalents stood at $241.6 million as at Dec 31, 2016.
Super Group has declared an interim dividend of 1.0 cent per share, but says it has not made a decision on whether to recommend a final dividend for FY16.
It had paid out an interim dividend of 1.0 cent per share and a final dividend of 1.2 cents per share a year ago.
Looking ahead, Super Group says it expects market conditions to be challenging in the next 12 months.
“Management will continue to build upon its three-pronged strategy of Branding, Innovation and Diversification to deliver long term growth for the group,” it says in a filing to SGX on Tuesday.
Shares of Super Group closed 1 cent higher at $1.30 on Tuesday.